Posts Tagged ‘securitization’

Former Bear hedge fund managers surrender Ralph Cioffi and Matthew Tannin, who managed Bear Stearns hedge funds before the subprime collapse, charged with lying to investors about mortgage market risk. | CNN Money

Tracy Warren was a quality-control consultant for Bear Stearns and other mortgage security purchasers on Wall Street. Her job was to review mortgage loans to determine whether they had merit for investment purposes. (She saw the loans after they were made, but before they were sold to investors and led to the national economy’s crash-and-burn [...]

NYT on how Moody’s triple-A security ratings led to the subprime meltdown. | crosspost: Consumerist

Call it what you will, the borrower bailout/rescue/whatever does not seem to be working. Foreclosures are still on the rise along with defaults and sad stories. And while those numbers go up, the economy continues to worsen.
This is not doing the banks any good, either. Banks lose a ton of money every time they have [...]

“Securitization” is a hot word in money circles, but I don’t think many people outside of Wall Street know what securitization is or what it means. The Wikipedia entry on securitization is very good, but a bit technical. I think I can boil it down a bit more.
Any asset can be securitized. One asset we [...]

Sure you owe somebody for your mortgage loan, but who? Since lenders buy and sell loans so frequently, many are unable to prove they own the loans they hold, resulting in as much as $2.1 trillion in “orphan” loans. Says former foreclosure victim Joe Lents: “If you’re going to take my house away from me, [...]

The NYTimes has a piece on the 5th Annual Conference of the American Securitization Forum held in Las Vegas. These are the guys who played a major role in bring us the current foreclosure mess. Well while the rest of the country and the world for that matter mucks its way out of the mess [...]